Musk’s SpaceX–xAI merger puts 8,300 Bitcoin holdings back in focus as a potential IPO variable

As the merger between SpaceX, the space company led by Elon Musk, and xAI, an artificial intelligence (AI) company, draws attention for the potential creation of a mega tech firm, SpaceX’s large Bitcoin (BTC) holdings are once again emerging as a focal point for the market.

According to CoinDesk on the 3rd (local time), the merged entity will inherit SpaceX’s existing Bitcoin assets as they are. Based on estimates from past disclosures, SpaceX is believed to hold about 8,300 BTC, worth roughly $650 million at current prices. While the stake is not large given that a potential IPO valuation could exceed $1 trillion, it is seen as a level that is difficult to ignore in terms of accounting treatment, disclosures, and investor perception.

SpaceX first disclosed its Bitcoin purchases in 2021 and, unlike electric-vehicle maker Tesla, has remained a private company. As a result, it has been relatively insulated from the accounting volatility faced by public companies, which must reflect fair-value remeasurements each quarter. However, that changes if it begins preparations for an IPO. Virtual assets (cryptocurrencies) become items that must be clearly disclosed in financial statements and offering documents, and valuation gains or losses driven by price volatility can also become a factor in market assessments.

Tesla’s case illustrates this burden vividly. In the past, Tesla recognized hundreds of millions of dollars in impairment losses during periods of falling prices even without selling its Bitcoin. For this reason, SpaceX’s Bitcoin holdings could likewise be interpreted conservatively during the IPO process.

That said, SpaceX differs from Tesla in that it has little history of actively trading Bitcoin. A long-term holding stance may be viewed as a stabilizing signal for some long-term investors, but it remains a burden that flexibility could be limited if market conditions deteriorate around the time of an IPO.

The merger also raises questions about how digital assets are managed across Musk’s broader corporate empire. Tesla, SpaceX, and xAI have each operated under different disclosure regimes, accounting standards, and capital structures depending on whether they are public or private. As the SpaceX–xAI merger concentrates Bitcoin exposure within a single corporate structure, attention is turning to how Musk’s digital-asset holding strategy will be interpreted by IPO investors going forward.